GOP promises to deliver bailout vote

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It's becoming clear that opposition is bending toward the $700 billion financial rescue plan in time for a second House vote on Friday.
AP Photo

Four days after it failed dramatically, Treasury’s $700 billion financial rescue plan was back before the House Friday morning, riding a wave of turmoil in the markets and renewed determination by leaders in both parties to see it over the top.

Democrats and Republicans alike will try to grow their vote since Monday’s defeat, but the Republicans are most at the center of the storm given the pressure from the Bush Administration and business community for action.

Senate Republicans, behind Minority Leader Mitch McConnell (R-Ky.) set the tone Wednesday night, voting by a better than 2-1 margin in favor of the package after revisions were made adding popular tax cuts and expanded federal insurance for deposits at banks.

Given the conservative, often populist rhetoric against what critics describe as a “Wall Street bailout,” no one expects to find the same level of support in the House. But coming into Friday morning, leaders were confident they could close the gap and switch at least 12 votes—the margin of defeat Monday.

Republicans appear sure they can produce 76 votes –a gain of 11—and would like to see that grow to at least 80. Democrats feel they will be north of the 140 votes they had Monday, meaning that a 218 majority is within reach.

But the result is still a closely fought, ticklish political landscape in which any backsliding and distrust can cause problems. Both Minority Leader John Boehner (R-Ohio) and the party whip, Rep. Roy Blunt (R-Mo.) could be fatally hurt by another defeat. At the same time Democrats were stung themselves by Monday’s loss and are working harder together with Barack Obama, the party’s presidential nominee, who is making calls to individual lawmakers to shore up support.

In a call to Maryland Rep. Elijah Cummings on Tuesday, for example. Obama spoke of how President Obama could revisit bankruptcy laws to give judges more leeway to restructure residential mortgage payments when threatened with foreclosure.

Obama didn't need to lay out a quid pro quo because the message was clear. And Cummings, a no vote Monday, told Obama he was “open” to changing his vote but wasn’t there yet.

"I have to look beyond [the bailout] to a rainbow called Obama," he said. "When you bring in the Obama factor, that's very very important."

Thursday brought another round of public – and private – reversals, with Georgia Rep. John Lewis, a prominent member of the Congressional Black Caucus, telling colleagues at a closed-door meeting that he would support the bailout plan, according to people present – Lewis wouldn’t confirm as he left the meeting, but said, “Just watch the board.”

Republicans, from retiring Minnesota Rep. Jim Ramstad to Tennessee Rep. Zach Wamp, and Democrats, from Nevada Rep. Shelley Berkley to Missouri Rep. Emanuel Cleaver, all declared on Thursday they would support the current bill, according to various news sources.

“We’re still looking at it,” said Rep. Pete Hoekstra, another lawmaker rethinking his vote.

The Michigan Republican is more attracted to the Senate package than the initial bill because it would raise the amount of money the Federal Deposit Insurance Corp. insures, from $100,000 to $250,000. Hoekstra told Vice President Dick Cheney on Monday to make that change and is pleased to see it has been included.

Hoekstra is also more open to the bailout package now that SEC Chairman Chris Cox agreed to give companies more leeway in pricing their assets under mark-to-marketing accounting rules.

If I had my way *** Recoiling from the cost of the Senate bill, the House votes again on the same bill they voted down (not the loaded-up Senate version), perhaps with authority of the Secretary of the Treasury to invest in banks and purchase mortgages, and would pass it. The bill would go to conference. In the conference, the Senate would be forced to defend and keep the tax provisions and pork they added to the bill ostensibly to get it through the House. I doubt if much would remain. Nor should it.

as a former democrat, I agree. Nancy 's "leadership" has made the Democrats non-leaders. She has avoided all real change, and now sides with Bush and Paulson. From the time she "took impeachment off the table," I've wondered which party she's supposed to be leading.

i do hope that the democrats will get rid of her--assuming they carry the house again, which after this financial debacle, I am unsure of.

When pork-barrel politics, redirecting blame and re-election wins are the measures of power in Congress, Americans cannot rely on a Congress bankrupt of money, ideas, and scruples to find solutions for America's wealth and leadership meltdown.

For decades Congressional Republicans and Democrats have financed their deficit spending with legislation that hamstrung regulatory agencies and promoted lenient credit to encourage consumer borrowing in order to produce economic expansion.

like sarah... im ill... anyone who votes for this bill does not deserve to be called a republican...the only solution out of this fake crisis u libtards are making up is to cut taxes and let the free markets self regulate. if McCain wants to be the bestest conservative ever he should make rush limbaugh the secretary of everything and sean hannity should be his main advisor... hopefully the libs and foreigner would leave and only true patriots who hate terror can remain

This bail out plan with all the pork on it is Bad for America. When will the Democrats learn you can not keep adding stuff to important bills. They should be giving every American Citizen 200,000 That would fix the economy. I fear it is the Democrats wanting to pay back, those who tried to help with the government take over for them, and a gesture to pay them back. Are screwing the American people over. I think every democrat that is up for re-election should be replaced. Until none of them are left. It will teach them to dabble where they should not.

Really bummed Defazio's proposal re: Isaac's plan and LaTourette's $250,000 were blocked by the rules committee. This was good, sensible bi-partisan work for the people blocked by b.s. Really a shame. Heaven help us with some of these rejects we've got in office.

The Democrats are FOR a Wall Street bailout? Did the last twenty years not happen?? Oliver Stone must be foaming at the mouth right about now. McCain & Obama both look like wimps on this but how, on earth, can Obama be for this??? This damages his "change" message.***And isn't it nice that our petulant Senate larded on another $150B to this bad idea?*** People need to understand what this deal means. We, the people, are going to to be taken to the cleaners twice. First, when we buy Wall Street's detritus, we'll naturally give Wall Street the best price. Then, when Wall Street buys the assets back, we'll no doubt give them a generous discount for being such swell guys about it. Like a drunk sailor on payday, Hank "Golden Slacks" Paulson is going to buy everybody on Wall Street round after round of "assistance." Only after he's spent 90% of his money is he going to start counting pennies. The transfer of power (and wealth) is earth-shaking. ***This authority needs to be issued to the President only, who would then delegate it to Treasury if that is the correct option. We don't even know who is going to be the Treasury Secretary in 6 months. What kind of leadership would give $700B to a short-timer? America, WAKE UP NOW!!! The constitutional foundation of your government may be at stake. One branch of your government is ceding unprecedented & unlimited power to a political appointee.***Finally, let's not forget that the ******* Bush is probably home-free. He can do a lot of damage in the next three months and Congress would have a hard time getting impeachment proceedings off the ground if Bush went wild. I see calculating darkness in those eyes now. Patriots, be vigilant...

obama - you have about nothing to worry, YOU will not be president! once you have completed your senatorial internship, we'll consider your position for the run at a later date. but keep in mind, you must first shed the marxism philosophy!

These wayward Republican House holdouts need to search their souls and even ask themselves this: What would Zimbabwe do? Who knows, maybe we'll have 12 new domestic military bases because of this vote.

DO Any of you posters have a better plan? This mess is as much your own ault as Wall Streets. WHY?

We have neglected feeding the economic-horse that created an environment allowing credit. American markets rose to their Global Position on the back of New Product Invention / New Product Manufacturing. The world communities bought the electric light, telephone, automobile, aircraft, radio,television,computer, pc, ThinkPad, and NASA (Kennedy's 10 year moonwalk plan)invented decades of a continuous flow of New Product Lines. Global Credit Markets were created with The American Economy atop the horse of Manufacturing.

We may blame deregulation of these markets, lack of oversight, dereliction of duty by many, an ill-educated public, and a varied palette of sins splashed against our credit tapestry but i submit it to be a decrease in our New Product Invention and Manufacturing that yields a poor foundation upon which these errors of judgment fall.

The liquid asset drain must also lay at the feet of our American penchant to immediately satisfy a lust for things rather than save to acquire or rather than 'work' the assets held. We like having 3-5 credit cards then pay the minimum on card #1 with card #3 and add a new purchase to #2. We like the 'No Money Down' deals, the 2 years without interest offer and we have not been informed that those contracts make their way to foreign buyers, drying both credit and liquidity wells from which we freely drink. We do not read the business sections for trends but merely check on our 401k gains. We sign Mortgage Documents without seeing a fraudulent "Balloon-Payment-Clause" due prior to our own solvency or ignore an adjustable interest rate that Chinese Markets may raise prior to our own.

If The United States Government must borrow more money from China then would it not better serve the strategic interest of Global Financial Markets to use the in-place structures? That is to say:

Quite a lot of doublethink and doublespeak going on now, George Orwell would be interested to see how well it works these days if he were around.

Just to provide some context here, the Boeing Tanker plane deal that Sen. McCain mentioned in the 1st debate was only for $6 billion, and he pointed out how awful a deal that was for the American people? At least in that deal we would have gotten some planes in return. This deal is 100 times larger - yes folks, 100 times bigger and we will get nothing in return except for whatever add ons are being slapped onto the edges of the bill now. And they are doing it for Mainstreet, Right...

The truth of the matter is there are plenty of other ways to do this, the crisis is created by the bankers themselves. Federal investigations are underway-we shall see if they produce anything meaningful- of the large investment houses. I've outlined other methods and agencies within our govenment which could be used to support Main Street.

The SBA is not included in this bill, money to them to lend would be helpful to main street but NOPE, this is a BIG BOY PACKAGE.

Plenty of targeted PORK SPENDING and TAX BREAKS are included in this bill to 'sweeten' it for passage. It still allows the Treasury to buy foreign debt too from international bankers that recently failed overseas.

The irony is nearly crushing-they do not trust each other. Lies of magnitude with off the books accounting.

Now a banking cartel is being created under our noses....this bill does not include restructuring that separates investment banks now commerical banks. Depositors money improves their bottom lines....the question remains if depositors capital will be used for the same bad behavior. I don't see restoration of banking structure or support for small community banks who didn't get involved in the CDO,SIV and high finance deals. If they get gobbled up I'm going into the street. Support them and not the bozo's that created this mess.

The passage of this bill will result in higher taxation for EVERYONE. There is no other mechanism to fund this. My PAID FOR HOME is in jeopardy if I am taxed anymore.

I cannot find a safe HEDGE from INFLATION (the REAL economy inflation) for my money that doesn't expose it to the risks of Wall Street.

An important clause allows the Treasury to buy distressed assets from failed overseas banks. They played the same speculative games in real estate and mortgage securities in thier countries too. Great.

Make these former investment houses pay back the colleges, hospitals, cities, towns, utilities etc from their criminal version of municipal bonds (Auction Rate Securities). That is one reason credit is frozen and no one on Capitol Hill sees this as problem????? These are their communities and their CONSTITUENTS. That credit market was frozen in JANUARY.